The exchange rate of the US dollar is an important factor in the economy of Pakistan. The dollar to PKR rate affects the trade balance, inflation, and foreign reserves of the country. In this article, we will discuss the current dollar to PKR rate in Pakistan interbank, its impact on the economy, and factors affecting the exchange rate.
Dollar to PKR Today Rate in Pakistan Interbank
As of September 2021, the dollar to PKR rate in Pakistan interbank is around 169.50. This means that one US dollar is worth 169.50 Pakistani rupees. However, the exchange rate can fluctuate frequently due to various economic and political factors.
Factors Affecting the Dollar to PKR Rate
The exchange rate of the dollar to PKR in Pakistan interbank is affected by several factors such as:
1. Interest Rates
The interest rates set by the central bank of Pakistan can affect the exchange rate of the dollar to PKR. If the interest rates are high, foreign investors are more likely to invest in the country, which increases the demand for Pakistani currency and strengthens its value against the dollar.
2. Inflation
Inflation is another factor that affects the exchange rate of the dollar to PKR. If the inflation rate is high, the value of the rupee decreases, and the exchange rate of the dollar to PKR increases.
3. Political Stability
Political stability is crucial for the exchange rate of the dollar to PKR. If there is political unrest in the country, foreign investors are less likely to invest, and the value of the rupee decreases.
4. Trade Balance
The trade balance between Pakistan and other countries can also affect the exchange rate of the dollar to PKR. If Pakistan has a trade surplus, the demand for Pakistani currency increases, and the exchange rate of the dollar to PKR decreases.
Impact of Dollar to PKR Rate on the Economy
The exchange rate of the dollar to PKR has a significant impact on the economy of Pakistan. A high exchange rate can lead to:
1. Inflation
A high exchange rate can lead to inflation as imported goods become more expensive, and companies pass on the cost to consumers.
2. High Foreign Debt
A high exchange rate can increase the foreign debt burden of the country as the government has to pay more in foreign currency.
3. Decrease in Foreign Reserves
A high exchange rate can decrease the foreign reserves of the country as the government has to use its reserves to pay for imports.
4. Decrease in Exports
A high exchange rate can decrease the exports of the country as the goods become more expensive for foreign buyers.
Conclusion
The exchange rate of the dollar to PKR in Pakistan interbank is an important indicator of the economy of Pakistan. The exchange rate is affected by various economic and political factors, and it has a significant impact on the economy of the country. It is essential for the government to maintain a stable exchange rate to ensure a healthy economy for the country.
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